Considering the purchase of rental property

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Reference no: EM13890708

You are considering the purchase of a rental property for $100,000, with a $20,000 down payment. Cash flows after loan payments will be as follows. The loan balance will be $70,000 at the end of 10 years. For what price must you sell the property at the end of 10 years to provide an effective annual return of 15 percent on your equity investment?

Reference no: EM13890708

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